Relative wealth concerns and complementarities in information acquisition

Review of Financial Studies

Volumn 24, Issue 1, 2011, Pages 169-207

  García, Diego ^a   Strobl, Günter ^a  

^a UNIVERSITY OF NORTH CAROLINA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 78650565700     PISSN: 08939454     EISSN: 14657368     Source Type: Journal    
DOI: 10.1093/rfs/hhq086     Document Type: Article

References (60)

1. Abel, A. B. 1990. Asset Prices under Habit Formation and Catching Up with the Joneses. American Economic Review 80:38-42.
2. Bae, K.-H., R. M. Stulz, and H. Tan. 2008. Do Local Analysts Know More? A Cross-country Study of the Performance of Local Analysts and Foreign Analysts. Journal of Financial Economics 88:581-606.
3. Bai, Y., E. C. Chang, and J. Wang. 2006. Asset Prices under Short-sale Constraints. Working Paper, MIT.
4. Bakshi, G. S., and Z. Chen. 1996. The Spirit of Capitalism and Stock Market Prices. American Economic Review 86:133-57.
5. Barlevy, G., and P. Veronesi. 2000. Information Acquisition in Financial Markets. Review of Economic Studies 67:79-90.
6. -. 2003. Rational Panics and Stock Market Crashes. Journal of Economic Theory 110:234-63.
7. -. 2008. Information Acquisition in Financial Markets: A Correction.Working Paper, University of Chicago.
8. Bisin, A., U. Horst, and O. Ö zgüra. 2006. Rational Expectations Equilibria of Economies with Local Interactions. Journal of Economic Theory 127:74-116.
9. Brown, J., Z. Ivkovíc, S. Weisbenner, and P. Smith. 2008. Neighbors Matter: Causal Community Effects and Stock Market Participation. Journal of Finance 63:1509-31.
10. Brunnermeier, M. K. 2001. Asset Pricing under Asymmetric Information. Oxford, UK: Oxford University Press.
11. Chamley, C. 2008. On "Acquisition of Information in Financial Markets." Review of Economic Studies 75:1081-84.
12. Charles, K. K., E. Hurst, and N. Roussanov. 2009. Conspicuous Consumption and Race. Quarterly Journal of Economics 124:425-67.
13. Clark, A. E., P. Frijters, and M. A. Shields. 2008. Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles. Journal of Economic Literature 46:95-144.
14. Colla, P., and A. Mele. 2010. Information Linkages and Correlated Trading. Review of Financial Studies 23:203-46.
15. Coval, J. D., and T. J. Moskowitz. 2001. The Geography of Investment: Informed Trading and Asset Prices. Journal of Political Economy 109:811-41.
16. DeMarzo, P., R. Kaniel, and I. Kremer. 2004. Diversification as a Public Good: Community Effects in Portfolio Choice. Journal of Finance 59:1667-715.
17. -. 2007. Technological Innovation and Real Investment Booms and Busts. Journal of Financial Economics 85:735-54.
18. -. 2008. Relative Wealth Concerns and Financial Bubbles. Review of Financial Studies 21:19-50.
19. Diamond, D. W. 1985. Optimal Release of Information by Firms. Journal of Finance 40:1071-94.
20. Diamond, D. W., and R. E. Verrecchia. 1981. Information Aggregation in a Noisy Rational Expectations Economy. Journal of Financial Economics 9:221-35.
21. Dorn, D., G. Huberman, and P. Sengmueller. 2008. Correlated Trading and Returns. Journal of Finance 63:885-920.
22. Duflo, E., and E. Saez. 2002. Participation and Investment Decisions in a Retirement Plan: The Influence of Colleagues' Choices. Journal of Public Economics 85:121-48.
23. Dupor, B., and W.-F. Liu. 2003. Jealousy and Equilibrium Overconsumption. American Economic Review 93:423-28.
24. Feng, L., and M. S. Seasholes. 2004. Correlated Trading and Location. Journal of Finance 59:2117-44.
25. French, K., and J. Poterba. 1991. International Diversification and International Equity Markets. American Economic Review 81:222-26.
26. Frey, B. S., and A. Stutzer. 2002. What Can Economists Learn from Happiness Research? Journal of Economic Literature 40:402-35.
27. Froot, K. A., D. S. Scharfstein, and J. C. Stein. 1992. Herd on the Street: Informational Inefficiencies in a Market with Short-term Speculation. Journal of Finance 47:1461-84.
28. Galí, J. 1994. Keeping Up with the Joneses: Consumption Externalities, Portfolio Choice, and Asset Prices. Journal of Money, Credit, and Banking 26:1-8.
29. Ganguli, J. V., and L. Yang. 2009. Complementarities, Multiplicity, and Supply Information. Journal of the European Economic Association 7:90-115.
30. Gennotte, G., and H. Leland. 1990. Market Liquidity, Hedging, and Crashes. American Economic Review 80:999-1021.
31. Glaeser, E., and J. A. Scheinkman. 2002. Non-market Interactions. Working Paper, Harvard University.
32. Goldstein, I., E. Ozdenoren, and K. Yuan. 2009. Trading Frenzies and Their Impact on Real Investment.Working Paper, Wharton School, University of Pennsylvania.
33. -. Forthcoming. Learning and Complementarities in Speculative Attacks. Review of Economic Studies.
34. Ǵomez, J.-P., R. Priestley, and F. Zapatero. 2009a. The Effect of Relative Wealth Concerns on the Cross-section of Stock Returns. Working Paper, Marshall School of Business, USC.
35. -. 2009b. Implications of Keeping-up-with-the-Joneses Behavior for the Equilibrium Cross-section of Stock Returns: International Evidence. Journal of Finance 64:2703-37.
36. Grinblatt, M., and M. Keloharju. 2001. How Distance, Language, and Culture Influence Stockholdings and Trades. Journal of Finance 56:1053-73. (Pubitemid 33581674)
37. Grossman, S. J., and J. E. Stiglitz. 1980. On the Impossibility of Informationally Efficient Markets. American Economic Review 70:393-408.
38. Grundy, B. D., and M. McNichols. 1989. Trade and the Revelation of Information through Prices and Direct Disclosure. Review of Financial Studies 2:495-526.
39. Hellwig, C., and L. Veldkamp. 2009. Knowing What Others Know: Coordination Motives in Information Acquisition. Review of Economic Studies 76:223-51.
40. Hellwig, M. F. 1980. On the Aggregation of Information in Competitive Markets. Journal of Economic Theory 22:477-98.
41. Hong, H., J. D. Kubik, and J. C. Stein. 2004. Social Interaction and Stock-market Participation. Journal of Finance 59:137-63.
42. -. 2005. Thy Neighbor's Portfolio: Word-of-mouth Effects in the Holdings and Trades of Money Managers. Journal of Finance 60:2801-24.
43. Huang, J., and J. Wang. 2009. Liquidity and Market Crashes. Review of Financial Studies 22:2607-43.
44. Ivkovíc, Z., C. Sialm, and S. Weisbenner. 2008. Portfolio Concentration and the Performance of Individual Investors. Journal of Financial and Quantitative Analysis 43:613-56.
45. Ivkovíc, Z., and S. Weisbenner. 2005. Local Does as Local Is: Information Content of the Geography of Individual Investors' Common Stock Investments. Journal of Finance 60:267-306.
46. -. 2007. Information Diffusion Effects in Individual Investors' Common Stock Purchases: Covet Thy Neighbors' Investment Choices. Review of Financial Studies 20:1327-57.
47. Jacklin, C., A. Kleidon, and P. Pfleiderer. 1992. Underestimation of Portfolio Insurance and the Crash of October 1987. Review of Financial Studies 5:35-63.
48. Ljungqvist, L., and H. Uhlig. 2000. Tax Policy and Aggregate Demand Management under Catching Up with the Joneses. American Economic Review 90:356-66.
49. Maccheroni, F., M. Marinacci, and A. Rustichini. 2010. Social Decision Theory: Choosing Within and Between Groups. Working Paper, University of Minnesota.
50. Malinova, K., and L. Smith. 2006. Informational Diversity and Proximity in Rational Expectations Equilibrium. Working Paper, University of Toronto.
51. Marín J. M., and R. Rahi. 1999. Speculative Securities. Economic Theory 14:653-68.
52. Mas-Colell, A., M. D. Whinston, and J. R. Green. 1995. Microeconomic Theory. Oxford, UK: Oxford University Press.
53. Massa, M., and A. Simonov. 2006. Hedging, Familiarity, and Portfolio Choice. Review of Financial Studies 19:633-85.
54. Mele, A., and F. Sangiorgi. 2008. Ambiguity Aversion and Market Efficiency. Working Paper, London School of Economics.
55. Seasholes, M. S., and N. Zhu. Forthcoming. Individual Investors and Local Bias. Journal of Finance.
56. Van Nieuwerburgh, S., and L. Veldkamp. 2009. Information Immobility and the Home Bias Puzzle. Journal of Finance 64:1187-215.
57. Veblen, T. B. 1899. The Theory of the Leisure Class: An Economic Study of Institutions. New York: Penguin.
58. Veldkamp, L. L. 2006a. Information Markets and the Comovement of Asset Prices. Review of Economic Studies 73:823-45.
59. -. 2006b. Media Frenzies in Markets for Financial Information. American Economic Review 96:577-601.
60. Verrecchia, R. E. 1982. Information Acquisition in a Noisy Rational Expectations Economy. Econometrica 50:1415-30.